Question: Why is net present value an important investment analysis tool? Because money loses value over time and net present value adjusts future earnings into today's

Why is net present value an important investment analysis tool?
Because money loses value over time and net present value adjusts future earnings into today's dollars.
Because most banks or investors set guidelines on the minimum net present value required for the companies they support.
Because we need to know exactly how much money we'll make in the future to decide if an investment is worth the risk.
Because anything that doesn't have a net present value of at least twice what it costs is a waste of money.

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